Labor Markets and School-to-Work Transition in Egypt: Diagnostics, Constraints, and Policy Framework

Despite substantial improvements in labor market outcomes in recent years (in raising employment and participation and in lowering unemployment), unemployment rates in Egypt remain exceedingly high among youth2 entering the labor market for the first time. A slow school-to-work transition remains the main reason behind high unemployment rates. The youth unemployment rate in Egypt, at 24 percent in year 2006, is high for international standards- though similar to those in North Africa. Moreover, youth entering the labor market for the first time account for about 82 percent of the countrys unemployed workers.